Canada: Current account deficit increasing

Canada’s current account deficit widened more than expected during the year’s first quarter on the back of increasing imports of both goods and services, according to Statistics Canada data.

During the first three months of the year, there was a $14.05 billion deficit, greatly exceeding original economist expectations that the deficit would be close to $12 billion.

In total, goods imports increased by $4 billion to $140.3 billion as Canada heavily imported energy products, motor vehicles and parts. Exports, on the other hand, increased by $2.2 billion to $138 billion.

Furthermore, trade in services further widened to a deficit of $5.65 billion, due to increases in the imports of commercial services.

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